05:07
Faizan
Applying a SWOT analysis to any part of business management is largely based on intellectual, honest and critical thinking. To apply a SWOT analysis to an audit, you must analyze all expenditures and assets without emotion. A SWOT analysis requires identifying the strengths, weaknesses, opportunities and threats of the company's financial information and then making a plan to use that information.
Identify the financial strengths of the company. Look closely at the balance sheets and all other
financial information. Look for signs of strength including good cash flow, a positive asset-to-debit ratio and total assets.
Make a list of the company's financial strengths. This should be a physical list that you can reference later when making a SWOT chart. Many people attempt to do this all "in their heads" and end up missing important information that becomes obvious when put on paper.
List the company's financial weaknesses. This should include everything from high inventory to unusually large expenses. Generally speaking, this is the easiest part of the SWOT analysis since almost any manager knows where his company is weakest.
Brainstorm opportunities and add them to the list. Could the company reduce expenses with better human resources management? Is there another option for sales for the company's product lines? This is the "dream big" section of the analysis. Look critically at opportunities, and dismiss those that are not feasible or realistic.
Identify threats to the the company's financial situation. This could be clients who are defaulting on payments due, the general economy or balloon payments due on company assets. Be specific and list as many as you can identify.
Create a SWOT chart by making a a grid with four squares. Strengths and opportunities should go in the upper-left corner and weaknesses and opportunities should go in the upper-right. In the lower-left corner, add strengths and threats, and put weaknesses and threats together in the lower-right. This should present an honest picture of the company's financial data.
Analyze the information to identify cuts that can be made in funding, increases that can be earned through additional sales, etc. This is the best chance to make the audit make sense and make it useful to the company.
Identify the financial strengths of the company. Look closely at the balance sheets and all other financial information. Look for signs of strength including good cash flow, a positive asset-to-debit ratio and total assets.
Make a list of the company's financial strengths. This should be a physical list that you can reference later when making a SWOT chart. Many people attempt to do this all "in their heads" and end up missing important information that becomes obvious when put on paper.
List the company's financial weaknesses. This should include everything from high inventory to unusually large expenses. Generally speaking, this is the easiest part of the SWOT analysis since almost any manager knows where his company is weakest.
Brainstorm opportunities and add them to the list. Could the company reduce expenses with better human resources management? Is there another option for sales for the company's product lines? This is the "dream big" section of the analysis. Look critically at opportunities, and dismiss those that are not feasible or realistic.
Identify threats to the the company's financial situation. This could be clients who are defaulting on payments due, the general economy or balloon payments due on company assets. Be specific and list as many as you can identify.
Create a SWOT chart by making a a grid with four squares. Strengths and opportunities should go in the upper-left corner and weaknesses and opportunities should go in the upper-right. In the lower-left corner, add strengths and threats, and put weaknesses and threats together in the lower-right. This should present an honest picture of the company's financial data.
Analyze the information to identify cuts that can be made in funding, increases that can be earned through additional sales, etc. This is the best chance to make the audit make sense and make it useful to the company.
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